Hindustan Petroleum Corporation Ltd. (HPCL) has fixed August 14, 2026 as the record date for its proposed final dividend of ₹19.25 per equity share for FY26, according to a company communication issued on Friday. The dividend remains subject to shareholder approval at the upcoming annual general meeting. The Board of Directors approved the dividend recommendation during its meeting held on May 13, 2026. As reported by CNBC TV18, this proposed payout represents the highest dividend declared by HPCL in the last five years, underscoring the strong financial performance delivered by the state-run oil marketing company during FY26. The company has outlined tax deduction at source (TDS) rates of 10% for residents with valid PAN and 20% for non-residents or those with invalid PAN. Shareholders must submit tax exemption documents by July 31, 2026 to avoid higher deductions.
HPCL ended FY26 on a robust note with impressive quarterly results. For the March quarter, the company reported a net profit of ₹4,901 crore, significantly ahead of the CNBC-TV18 poll estimate of ₹2,120 crore and up 20% sequentially. Quarterly revenue stood at ₹1.15 lakh crore, broadly unchanged from the December quarter. EBITDA rose 28% sequentially to ₹8,979 crore, while EBITDA margin expanded to 7.8% from 6.1% in the previous quarter, as reported by CNBC TV18.
The company's refining performance showed significant improvement during the year. HPCL reported a full-year gross refining margin (GRM) of $8.79 per barrel, compared with $5.74 per barrel in FY25. For the March quarter, GRM stood at $14.5 per barrel, demonstrating enhanced operational efficiency in the refining segment, according to the company's communication.
The tax deduction framework varies based on shareholder residential status and PAN validity. Resident shareholders with valid PAN are subject to 10% TDS, while those with invalid PAN face 20% TDS under Section 397. Resident individual shareholders are exempt from TDS if aggregate dividend income does not exceed ₹10,000 in FY 2026-27. For dividends exceeding ₹10,000, exemption applies if Form 121 - Annexure 1 is submitted subject to eligibility conditions. Non-resident shareholders are subject to 20% TDS plus applicable surcharge and cess under Section 393(2) of the Income Tax Act. SEBI mandates that dividends be paid only via electronic mode to members with updated KYC details.
